Concept 100 Realty

Common Mistakes

NOT GETTING PRE-APPROVED FOR THE LOAN.
Many would-be home buyers think that it is better to wait until they have found the home of their choice before they talk to a loan officer. Or they don't want to pay to have a credit report done unless they find the right house. Or they just don't want to be bothered with the questions from the lender, if they haven't found the right home. And they think that they know how much money they are qualified for based on their income.

These buyers might be in for a very big disappointment. There are many factors involved in determining how much a buyer is qualified for, not just income. And it is far better to get all lender's questions answered, and provide all the needed documents, before you are involved in the escrow period, which already has many of it's own time schedules to maintain. In today's Real Estate market, many sellers won't even consider a purchase offer without a letter of pre-approval from a lender.
NOT CHECKING WITH SEVERAL LENDERS TO BE SURE OF GETTING THE BEST RATES AND PROGRAMS.
Not all lenders have the same rates, or the same programs available. A lower interest rate may mean that the buyer can qualify for a larger loan, or certainly lower monthly payments. And, not all lenders have the same programs to offer. Some programs may require less money down, or less "closing" cost money up front, or may actually finance the "closing" costs for the buyer, which may mean almost no money at closing. Or they may have programs available for less than "impeccable" credit histories. So, check around!
FEAR OF COMMITTING TO A REAL ESTATE AGENT.
There was a time, not too long ago, when all agents worked on behalf of the Seller, because the Seller was the one who paid our commission. But we didn't tell the Buyer that we were working on the Seller's behalf. And this created a very bad situation. But, in today's industry, the agent working with the Buyer is working for the Buyer, and has a fiduciary responsibility to the Buyer. And the Agent is there to make certain that all time schedules are met, all inspections are done, and that everything "closes" on time. You really don't want all of that "hassle" to be your responsibility. And, it costs the Buyer nothing to have an Agent working on their behalf. The commissions are still paid by the Seller. The buyer really has nothing to lose, and a great deal of expertise to gain from the Agent!
NOT TAKING THE TIME TO DETERMINE THE BEST AREAS IN WHICH TO LIVE.
Every Buyer has certain needs and requirements for their lives... whether it's good schools for their children, close proximity to their jobs, close to church, or any of a number of other requirements. But, the Buyer doesn't always take these requirements into consideration when they look in an area for a new home. This is particularly true if the Buyer is moving to a new town, or city, and is unfamiliar with the area. Take the time to do research before you commit to an area. Get your Agent to help suggest sources where your questions and concerns can be answered.. Otherwise, you might regret your choice of area.
NOT GETTING A MARKET ANALYSIS FOR THE HOME THAT YOU ARE CONSIDERING.
Granted, this should be the responsibility of a good Agent, but not all Agents do this as a matter of operation. The Buyer should always make certain that their Agent does this service. Without this help, the Buyer is at a loss to determine what is the best offer to make for a house. And nobody really wants to pay more than the property is worth. That could really spoil the enjoyment of your new home.
NOT HAVING A HOME INSPECTION BEFORE YOU BUY THE PROPERTY.
Some Buyers don't want to spend the money to have an inspection by a reputable home inspector done. They think that they can tell the condition of the home themselves. They are generally wrong! And, what may seem like a lot of money at the time (maybe $300 or more) may be very little compared to the unexpected expenses they may incur soon after moving into their new home. Please don't make this mistake!
GET GOOD HOME WARRANTY INSURANCE.
That way, if the refrigerator breaks, or a water pipe bursts, or the a/c doesn't work, you will be covered, and the repairs will be done professionally, with little expense to you. Many Agents will offer this insurance as a "house warming" gift to their Clients. But, either way, get it!